Today, the use of payday loans among the young people in Sweden is causing huge problems with debts. Accessing these loans is very easy. You only need to send a message to one of the companies offering them.
According to statistics, the average amount of SMS loans borrowed in the country within one day is $300. The average interest and arrangement fees amount to around $50. But also, the borrowers have to repay these loans in less than a month. In the year 2015, the debt recovery agency in the country had to collect over 20,000 debts that people owed on these loans. Around 35.9 percent of these loans were granted to individuals between the age of 18 and 25 years.
In 2015, the Swedish government ordered companies providing these loans to review the interest rates and charges. This step banned the lenders from charging higher interest rates than that of the initial loan. Most of the SMS loans advertisements in the country target the young people particularly those in need of cash to buy clothes, or even night out. And because the loans are instant and easier to get, most young people are going for them.
The situation of payday loans in the UK
In the UK, people can borrow up to $3000 from online lenders, and they can repay the amount on their next pay date. First-time borrowers can get $600, depending on the SMS loan lender, but after they have repaid the loan successfully, they can borrow larger amounts. The amount people can borrow highly depends on some factors such income, credit history and lender’s criteria. Since the borrower has to repay the loan on their next pay date, they typically last for 7, 14 or even 21 days. However, some lenders allow a period of 60 days or 12 months.
The payday lending industry in the USA
In the United States, things are not different. A larger percentage of the Americans are relying on payday loans solely. According to financial experts, people relying on the loans may find themselves poorer. That means SMS borrowers make around $22,476 in a year and pay around $458 fees. However, around a quarter of these borrowers pay $78 or even more amounts in fees primarily because of repeat usage. Consumers using a mobile loan in the US remain on the lender’s hook for 199 days or around 55% of the year. These loans are lawful in around 36 states, and the charges are lower in states which regulate them.
To find out more about how SMS loans work in Sweden; besök webbplats